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Middletown commission tables request from youth soccer after officials flag $60,000 lease-tax bill
Summary
The General Counsel Commission on Oct. 28 tabled a request to add Middletown Youth Soccer to the city's list of tax-exempt lessees after the assessor said lease arrangements with PNC Leasing created roughly $60,000 in back taxes and members said more due diligence was needed.
The General Counsel Commission unanimously voted on Oct. 28 to table a proposed ordinance that would add Middletown Youth Soccer to the city's list of nonprofit lessees eligible for a lease-related tax exemption.
Chair Jeanette Blackwell said the ordinance was sponsored by Councilman Ford but that members wanted more information before granting an exemption. Assessor Damon Brash told the commission the soccer organization is leasing astroturf fields that are owned by PNC Leasing and that the leasing arrangement shifted tax liability to the youth soccer organization. "They're processing that tax burden to the youth soccer organization, and the taxes that, now do, would cause extreme financial harm to the youth soccer association," Brash said, adding the assessed back taxes were "in the area of $60,000."
Councilwoman Salafia pressed staff for clarity on ownership and payment history. Members asked whether PNC had been billed for back taxes and whether any amounts had been paid; Brash said the city had billed the owner but that he did not have payment details available at the meeting and would provide the figures to the commission. Chair Blackwell and other members said the ordinance appears to add only Middletown Youth Soccer to a list that otherwise includes Riverbend NHC, PA and that the commission was not prepared to extend the exemption without further review.
After discussion about the unusual ownership structure'fields sited on city property but under a lease with a third-party financier'the commission voted to table the item so staff could gather documentation on ownership records, the tax bill and the history of the lease arrangements.
The commission did not take a final vote on the exemption; members instructed staff to return with the requested documents and suggested the ordinance may be considered at a future meeting once the record is clarified.
What happens next: Assessor Damon Brash said he will send the commission the supporting documentation, including the amount billed and any payment history. The sponsorship remains with Councilman Ford; no new council action occurred during the Oct. 28 meeting.
